$4 million fine stems from a 2008 verdict that Dell used questionable business practices
Dell is one of the largest computer
manufacturers in the world and considering the size of the company,
it will come as no surprise to many that the computer maker at times
uses business practices that are questionable at best. Dell has
finally had to pay up on a suit it lost in 2008 over deceptive
business practices.
In May of 2008, Dell was hit with a fine
of $4 million after it was found to have fraudulently advertised
financing rates and used deceptive business practices. The suit was
filed by the New York Attorney General's office in 2007. The
allegations at the time that the suit was filed included that the
company misled customers on the financing rates they were promised by
telling the customers they would get a low finance rate, and then
hitting them with a higher rate.
Dell also failed to disclose
all of the terms of its warranty service with respect to next day
service. The $4 million award was granted against Dell in May of 2008
by the New York Supreme court. Along with the $4 million fine, the
computer maker agreed to change its advertising, sales and finance
practices.
Dell now has to disclose detailed information to
customers about the level of service they will receive with
warranties and service plans and the percentage of people who will
actually qualify for the low interest rates advertised. CNET News
reports that the $4 million will be used
to compensate Dell customers in New York who were affected by
Dell's business practices.
New York Attorney General Andrew M.
Cuomo issued
a statement, reports PC World, that read, "Today's
announcement is the final step in ensuring New Yorkers harmed by
Dell's deceptive and illegal business practices are fully
compensated."
"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates
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